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Yes, the employer should then select 2.0% as the default rate. This means by March 2023 the paychecks would have the default rate chosen for them.
The new default Arizona withholding rate is 2.0%. What if the employee wants their Arizona taxes to be overwithheld? Employees will still have the option of selecting a higher Arizona withholding rate than their wages might dictate and there is still a line to add an additional amount of Arizona withholding.
You may change the withholding amount by completing Arizona Form A-4 to change the previous withholding amount or percentage. Complete Arizona Form A-4 and provide it to your employer. Keep a copy for your records.
¶11-520, Apportionment The double-weighted sales factor formula is a fraction consisting of the sum of the property factor, the payroll factor, and two times the sales factor, divided by four.
The new default Arizona withholding rate is 2.0%. What if the employee wants their Arizona taxes to be overwithheld? Employees will still have the option of selecting a higher Arizona withholding rate than their wages might dictate and there is still a line to add an additional amount of Arizona withholding.